digipic wrote: The "Chinaman" is at it again posting disonformation and raising redflag.
I did some due diligence and found these GREENFLAGS
1. Nevsun has been operating in Eritrea for a long time
2. They constructed and build the Bisha mine in 2008-2010 on time and under budget
3. They have paid their shareholders generous dividends in excess of $100 million
4. The number of shares o/s prior to the RMC proposed merger is less than 200 million
5. The cash balance prior to the RMC proposed merger was in excess of $430 million
6. The annual cash flow generated in 2015 was in excess of $120 million
7. Cash flow in 2016 would be further enhanced through the sale of gold and equivalents, expected to raise an additional $50 + millions. Thus without the RMC merger, NSU would have in excess of $500 million in cash at the end of 2016
8. They have achieved an excellent safety and environment record
9. Have contributed greatly in creating benefits to Eritreans as most of the labour force is local
10. Have paid enormous amount of taxes and dividends to Eritreans, to aid them build their infrastrure
11. They are profitable
12. The proven and probable reserves have increased multifold through the years.
13. Current exploration keeps on returning excellent results, indicating further significant reserves in the future
14. They have recently completed their Zinc Flotation Plant, on time and under budget
15. They have proven capable management
Now on to the real REDFLAGS, which the "Chinaman" does not say, and/or omits in saying:
1. A small minority of dissidents identified thus far as being XGC and Jim Bao, are attempting to undermine RMC management and the Board of Directors. In other words, the people that have established RMC as an attractive investment are being what some people may classify and consider, call "sabotage".
2. These minority dissidents, have not submitted a formal binding superior proposal to RMC management and board, for them to evaluate and more importantly give the RMC shareholders a voice in evaluating their proposition.
3. These minority dissidents have indicated that they have established, an unsolicited, a unilateral value of $8 per share for their proposed not binding proposal. RMC has not been consulted and involved in this process.
704
4. These minority dissidends have proposed non binding, unsolicited financial loans.
5. These minority dissidents have without authorization from RMC management or the Board, issued press releases demanding NSU to make changes, etc.
6. In essence these minority dissidents are attempting to take over RMC management by defacto.
7. These minority dissidents may have violated securities exchange provisions through their actions.
8. These minority dissidents are attempting to derail the proposed merger, and increase their "ownership" of RMC through a backdoor process, without the concurrence of RMC management, Board and more importantly by major shareholders
9. Through their actions, these minority dissidents may have established a poisoned investment environment for any prospective acquirer that may have been contemplating presenting RMC with a superior proposal to NSU
10. I wonder how these minority dissidents are affecting the future of RMC, should the proposed merger with NSU fail to materialize. How concerned or affected, are the major shareholders of RMC going forward in that respect?
11. What would NSU do with their significant amount of shares purchased at $9.40 cdn, if the proposed merger fais? Would that put a cap on the stock price of RMC going forward, if NSU decided to dispose?
12. Can RMC afford the financial terms of the loan obtained from NSU?
13 How would the management and board of RMC be affected, if the merger were to fail?
The above REDFLAGS are my opinion. I'm a concerned individual investor of RMC and not associated with NSU, brokers, investment banks, banks or any other financial institution, or any other incorporated or unincorporated entities.
This will be my final post as I literally had enough of this nonsense. I'm totally disgusted and appalled.
Wish everybody good luck on their investment and please do your own due diligence before you make a decision.